Key Takeaways:
- Worldcoin token, developed by Tools for Humanity, launched on July 24
- However, the internet has not been kind to the token, accusing it of being a scam.
NEW DELHI (CoinChapter.com) — Worldcoin, a crypto token spearheaded by OpenAI chief Sam Altman, launched on July 24. The project has set some lofty ideals, aiming to “freely distribute shares of a new digital token to every person on the planet.”
Crypto Twitter Slams Worldcoin over Security
Several prominent netizens of crypto Twitter shared concerns about the project, including Ethereum founder Vitalik Buterin. The Ethereum chief released a blog post highlighting four major concerns regarding the project’s user authentication system.
Worldcoin claims the authentication system, called ‘Proof-of-Personhood,’ would be able to authenticate users without storing any personal data. For the system to work, users must scan their irises using the ‘orb.’
However, Buterin argued that the system could create potential issues with privacy, accessibility, centralization, and security. The Ethereum founder raised particular concerns about the orb, stating that it was impossible to determine if the device had any backdoors or was properly constructed.
As such, the possibility of the Worldcoin Foundation adding a “backdoor into the system” remains, even if the software layer was perfect and decentralized.
The registry of iris scans may reveal information. At the very least, if someone else scans your iris, they can check it against the database to determine whether or not you have a World ID. Potentially, iris scans might reveal more information.
Vitalik Buterin expressed his concerns about privacy of the Worldcoin platform.
Moreover, Buterin also shared that the platform had security concerns, such as malicious elements that could hack users’ phones or coerce them into scanning their irises.
Scam Accusations Mount
Ki Young Ju, CEO of Cryptoquant, took a jibe at Worldcoin’s goal to “freely distribute” tokens to everyone globally fails when it comes to the US. Worldcoin tokens are unavailable in the US, likely due to regulatory concerns.
However, US citizens could still use the orb to scan their irises without any incentive.
I still don’t understand why did they need to issue ‘Worldcoin’ to replace Bitcoin as a global digital money. The iris info is not even used for managing digital wallets.
Ki Young Ju mused on Twitter
Young Ju also noted that if the project created the WLD token only to attract users without any utility, it would suggest the Worldcoin token was a scam.
FactoryDAO founder Nick Almond highlighted that WLD’s tokenomics were nearly identical to MAPS, a token that had questionable tokenomics. Per available data, the Worldcoin token has a 1% circulating supply with a $30 billion FDV.
The FactoryDAO founder called the project “a straight-up pump and dump.”
They honestly must have let SBF design the token economics. He was in this scam day one.
Nick Almond joked about Worldcoin’s tokenomics.
Crypto lawyer John E. Deaton advised his 284,500 followers to “run away” from the project. The pro-XRP lawyer was reacting to Worldcoin founders Sam Altman and Alex Bania refusing to share details about WLD token distribution.
Deaton stated that the refusal could mean the founders were being cautious due to the regulatory climate or being a “moron.”
A crypto analyst, The DeFi Investor, also raised concerns about WLD being a scam, calling its tokenomics ‘predatory.‘
I strongly advise staying away from its token.
The DeFi Investor warned on Twitter
